I am pleased to introduce EVRAZ’ annual report for 2016, a year in which the Group delivered a solid performance and continued to make significant progress in enhancing the overall efficiency of its operations.

Market sentiment was shaped by several factors in 2016, including positive global price trends in steel and bulk commodities, driven by developments in China. At the same time, Russian and North American steel consumption declined amid unfavourable economic conditions, lower Russian GDP and falling oil prices.

While the outlook for metal prices remains uncertain, the increase in prices in 2016 was naturally beneficial for EVRAZ, and we hope that it marks the start of a sustained recovery...

Last year was one of considerable volatility, beginning with steel and raw material prices falling to multi-year lows and ending with a four-fold increase in coking coal prices and an 80% increase in steel prices compared with the beginning of the year.

Many of the market movements were driven by Chinese government measures, such as investment stimulus, limitations on coal production and ongoing steelmaking capacity optimisation.

While the market did not anticipate these developments, we tend to see China’s efforts as positive for the global metals and mining industry. Ultimately, they should lead to more effective capacity utilisation and healthier margins worldwide. The results of 2016 support this view: on average, the dynamics of steel, coal and iron ore prices improved year-on-year.

Given the volatile nature of the industry, we believe that our efforts should remain focused on our long-term vision and be less dependent on short-term market fluctuations...

In 2016, the management carried out a robust assessment of the principal risks facing the Group.

Whilst the composition of the Group’s principal risks has not changed compared with the previous year, a detailed analysis of their impact and probability of negative consequences for the Group has led to a recalibration in assessment of some of the risks